Rumors: RBS may sell Citizens

After UK government took over 58% of stakes of Royal Bank of Scotland Group (RBS) on November 28, now there are rumors RBS will be shrinking its assets to focus only on local market rather than international market. This speculation issue is based on concerning of UK government to local market. As the major holder, UK government will be much more seeing RBS focus on being a UK company.

Citizens which RBS acquired in 1988, has a network of branches that stretches from the Northeast through the Midwest and does not have the kind of overhang from troubled mortgages that National City did. According to Robert Maneri, an analyst at KeyCorp's Victory Capital Management, Citizens is certainly saleable.

If RBS sell Citizens, it will likely retain Greenwich because RBS will still need to access US Bond Market. Morgan Stanley, M&T Bank Corp., or Toronto-Dominion Bank may become Citizens buyers.

Related Posts :

UK takes over 58% of RBS shares

Sources :

IDD Magazine: RBS Woes Renew Talk Of US Asset Sale, December 3, 2008

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